Emulex Gains Fibre Channel Market Share

COSTA MESA, Calif., Feb. 6, 2015 /PRNewswire/ -- Emulex Corporation (NYSE:ELX), a leader in network connectivity, monitoring and management, today announced that it has gained more than two and a half points of Fibre Channel revenue market share over its nearest competitor during the fourth quarter of calendar 2014, according to the Crehan Research Q4 2014 Server-class Adapter and LOM market share report. This growth was driven by the strength of the Company's Gen 5 (16Gb) Fibre Channel (FC) and storage target business, as well as the overall resiliency in demand for Fibre Channel connectivity. Emulex Gen 5 FC revenue grew more than 30 percent quarter-over-quarter and more than doubled year-over-year.

"Our Fibre Channel market share gains are a sign of our strategic investments in advanced features for flash storage, our long-term partnerships with OEMs in China, and our continued focus on growing target-based business," said Shaun Walsh, senior vice president of marketing, Emulex. "The Gen 5 FC market transition is under way and storage target market holds an incremental total addressable market opportunity of at least $75 million in potential revenue and we're pleased with our recent design win traction in this space."  

Emulex's industry leading LightPulse® Gen 5 FC Host Bus Adapters (HBAs) offer:

• Superior Gen 5 FC Connectivity: Emulex Gen 5 FC HBAs deliver more than 1.2 million I/O operations per second (IOPS) on a single port, ¹ the highest level of Fibre Channel adapter performance available today, and up to 6x greater IOPS per port than the previous generation, ¹ enabling better storage performance for cloud and storage intensive applications.
• Increased I/O Bandwidth: Emulex Gen 5 FC HBAs support PCI Express (PCIe) 3.0, which provides a faster I/O bus, more PCIe lanes and increased I/O bandwidth, enabling Emulex Gen 5 FC technology to provide optimal performance for applications, such as virtualization and database management systems.
• Optimized Application Performance: Customers can now optimize application performance and accelerate deployment problem resolution with integrated support for Brocade ClearLink diagnostics technology within Emulex Gen 5 FC HBAs.
• Improved Quality of Service: Emulex Gen 5 FC also includes exclusive ExpressLane™ technology, which improves both Service Level Agreements (SLAs) and Quality of Service (QoS) by using prioritization flags to identify priority traffic to the fabric, alleviating congestion, reducing latency and improving throughput.

1.       Based on Emulex Implementers Lab blog

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About Emulex
Emulex provides connectivity, monitoring and management solutions for high-performance networks, delivering provisioning, end-to-end application visibility, optimization and acceleration for the next generation of software-defined, telco and Web-scale data centers. The Company's I/O connectivity portfolio, which has been designed into server and storage solutions from leading OEMs and ODMs worldwide, enables organizations to manage bandwidth, latency, security and virtualization. The Emulex network visibility portfolio enables global organizations to monitor and improve application and network performance management. Emulex is headquartered in Costa Mesa, Calif. For more information about Emulex (NYSE:ELX) please visit http://www.Emulex.com.

"Safe Harbor" Statement
"Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above contain forward-looking statements that involve risk and uncertainties. We expressly disclaim any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. We wish to caution readers that actual future results could differ materially from those described in the forward-looking statements as a result of a variety of factors, including those discussed in our filings with the Securities and Exchange Commission, including our recent filings on Forms 10-K and 10-Q, under the caption "Risk Factors."  Those factors and the factors listed below could cause actual results to differ materially from those in the forward-looking statements:

• faster than anticipated declines in the demand for storage networking and fiber channel and slower than expected growth of the converged networking market or the failure of our Original Equipment Manufacturer (OEM) customers to successfully incorporate our products into their systems;
• the highly competitive nature of the markets for our products as well as pricing pressures that may result from such competitive conditions  and the emergence of new or stronger competitors as a result of consolidation movements in the market;
• our dependence on a limited number of customers and the effects of the loss of, decrease in or delays of orders by any such customers or the failure of our OEM customers to successfully incorporate our products into their systems;
• our reliance on a limited number of third-party suppliers and subcontractors for components and assembly, many of which are located outside of the United States;
• the effect on our margins of rapid migration of technology and product substitution by customers, including transitions from application specific integrated circuit (ASIC) solutions to boards for selected applications and higher-end to lower-end products, mezzanine card products or modular Local Area Network (LAN) on Motherboard (LOMs);
• the non-linearity and variability in the level of our revenue resulting from the variable and seasonal procurement patterns of our customers;
• the possibility that our goodwill could become impaired in the near term which would result in a non-cash charge and could adversely affect our reported GAAP operating results;
• any inadequacy of our intellectual property protection or our ability to obtain necessary licenses or other intellectual property rights on commercially reasonable terms;
• our ability to attract and retain key technical personnel;
• our ability to respond quickly to technological developments and to benefit from our research and development activities as well as government grants related thereto and delays in product development;
• intellectual property and other litigation against us, with or without merit, that could result in substantial attorneys' fees and costs, cause product shipment delays, loss of patent rights, monetary damages, costs associated with product or component redesigns and require us to indemnify customers or enter into royalty or licensing agreements, which may or may not be available;
• our dependence on sales and product production outside of the United States so that our results could be affected by adverse economic, social, political and infrastructure conditions in those countries;
• that we may fail to realize the anticipated benefits from the acquisition of Endace Limited (Endace) on a timely basis or at all which could result in an impairment of assets or be unable to complete the integration of Endace's technology into our existing operations in a timely and efficient manner;
• the effect of any actual or potential unsolicited offers to acquire us, proxy contests or the activities of activist investors;
• weakness in domestic and worldwide macro-economic conditions, currency exchange rate fluctuations or  potential disruptions in world credit and equity markets; terrorist activities, natural disasters, or general economic or political instability and any resulting disruption in our supply chain or customer purchasing patterns; and
• changes in tax rates or legislation, accounting standards and other regulatory changes.

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SOURCE Emulex Corporation

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